Article Can Good News Be A Signal To Sell?

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There are times when an investor should hold onto a stock when a company has just reported solid earnings or made some other positive announcement. However, there are also times when an investor should bail the second good news hits the tape. So how can you tell when to “sell on the news”? Let’s take a look at some of the instances where bailing out might be the best option. Look for Something Offsetting Very often, companies are aware that a particular piece of bad news will have an adverse impact on their stock price. In an effort to limit the potential damage, they combine it with a positive announcement and then disseminate it to the wire services, hoping that Wall Street will overlook it. Don’t be fooled by this tactic! Read the whole release and try to read between the lines; if bad news is in there evaluate it carefully – it may signal that it’s time to get out of this stock.
A terrific example of mixing bad news with good news can be found in a 2007 Crocs...

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